Stocks

Hooray—tariffs are out of the way, at least for now. But the market may have a bigger worry coming in tomorrow's payrolls report.

That may help explain why stocks aren't doing much despite reports of a softened tariff plan. The S&P 500 is little changed at 2727.76 at 12:44 p.m. today, while the Dow Jones Industrial Average has declined 45.99 points, or 0.2%, to 24,755.37. The Nasdaq Composite has advanced 0.2%, to 7,413.37.

It makes sense that wages are a bigger concern right now. Credit Suisse stratgeist Jonathan Golub notes that the growth rate has accelerated from 2.3% to 2.9% over the past four months. He isn't worried yet, however. "Despite the pickup in wage growth, other metrics remain quite favorable, pointing to limited recessionary risk," he writes. "While our vigilance around recessionary pressures is heightened, the overall backdrop remains quite positive for equities."

Maybe so. But don't forget, it was a slightly stronger-than-expected increase in wages that caused the volatility eruption last month. Let's just say we wouldn't want to be buying ahead of tomorrow's report either. —Ben Levisohn

Since then, Sarepta has gained 13%, and are up 30% since the start of the year. It also had a really great 2017.

Can Sarepta continue to head higher? SunTrust Robinson Humphrey analyst Edward Nash argued that 2018 could be yet another "catalyst-rich" year for the stock. In addition, he believes that with sales projected to rise 100% year over year, and a balance sheet flush with $1.1 billion in cash, Sarepta is well positioned to advance its Duchenne Muscular Disease (DMD) therapy franchise. And the Food and Drug Administration's new rules for DMD treatment, released last month, could provide more upside to Sarepta, Nash argues. As a result, he reiterated his Buy rating on the stock and raised his price target by $20, to $76.

It's not helping much today, however. Sarepta's shares have dropped 2% to $72.86 at 12:27 p.m.—but they remain in a steady uptrend. —Teresa Rivas

Bulls vs. Bears: Dollar Tree

Dollar Tree (DLTR) tumbled on its fourth-quarter earnings report yesterday, and now analysts are weighing in on its 14% drop and whether its stock is the kind of bargain you might find in one of its stores—or something to avoid altogether.

What the Bears Say: MKM analyst Patrick McKeever blames Dollar Tree’s miss on weaker-than-expected same-store sales at its Family Dollar chain, but also points to disappointment over plans to reinvest 40% of the company's tax savings on higher wages and better training for workers, and on higher fuel and shipping costs. "While the labor investment should pay dividends in the form of lower turnover, cleaner stores, better in-stocks, and better service, lagging performance at the Family Dollar segment reinforces our biggest concern/holdback," McKeever says. He cut his target to $98 from $124.

What the Bulls Say: Barclays thought the news was cause for an upgrade, not a target cut. Analyst Karen Short raised her rating on Dollar Tree to Overweight from Equal Weight, with a $100 price target. She writes that the company's guidance is conservative, and that it's a smart move for it to reinvest its tax savings. She calls it a "best in class retailer" that has gotten too cheap following its selloff.

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